The Research On LS Group’s Internal Audit Organization System

At present, China’s economy is expanding, economic development is also changing. Under the environment of China’s economic development, LS Group is also constantly engaged in transformation and innovation, in order to adapt to the needs of development and to better serve economic and socity. Currently, LS Group vigorously promote intensive development strategy and enterprise information management. In recent years, supervision and auditing agencies have more significant supervision on large state-owned enterprises. LS Group is in a time of change, but also in a time of the regulatory environment strengthening.As an important part of LS Group’s internal supervision system, internal audit play a considerable role in internal control, operational risk prevention and corporate governance improvement. LS Group has high expectations on its internal audit and new requirements in internal audit innovation. International first-class enterprises have intensified internal audit organization system to enhance the independence, improve efficiency and enhance the effectiveness of the internal audit, also a guarantee on standardization organizations. There are still some problems and shortcomings in LS Group internal audit organization system. To promote innovation of audit basic work, internal audit organization system reform is an inevitable choice for the company’s development strategy to adapt to the requirements.Followed by independence, applicability, efficiency, systematic and unity principle, in accordance with the idea of group operation, unity operation and resource shifting, LS Group headquarters should establish audit committee. Its subsidiaries set up audit agency. A top-down audit oversight system should be set up and audit resources should be gradually moved up. There also should be a clear division of responsibilities, overall planning, and group operation in internal audit organization.LS Group should set up a guarantee mechanism, including the mechanisms of power, coordination mechanisms, optimization mechanism, feedback mechanisms and constraints mechanism, to make internal audit organization system run effectively.